Sysco Q3 profit jumps 33% beats estimates

Sysco Corporation (NYSE: SYY) reported a 33% jump in earnings for the third quarter helped by a benefit from income taxes as well as lower interest expense. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates due to a drop in sales from International Foodservice operations.

Net income climbed by 33.3% to $440.1 million and earnings soared by 35% to $0.85 per share. During the quarter, the company managed expenses well and delivered solid operating income growth. Adjusted earnings increased by 17.4% to $0.79 per share.

Net sales grew by 2.2% to $14.66 billion. The top line growth was benefited from higher total case volume within US Broadline operations despite a decrease in sales from International Foodservice Operations.

For the third quarter, sales from US Foodservice Operations increased by 4.1%. However, sales from International Foodservice Operations declined 1.5% as foreign exchange negatively impacted sales by 1.1%. Sales from Sygma dropped 4.3% while other sales increased by 7.3%.

Local case volume within U.S. Broadline operations increased 3.1%, of which 2.2% was organic, while total case volume within U.S. Broadline operations grew 2.1%, of which 1.3% was organic.

Cash flow from operations was $1.4 million for the first 39 weeks of fiscal 2019, which was $244.3 million higher compared to the prior year period. Free cash flow was $1 billion, which was $233.5 million higher compared to the prior year.